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Havasu Off-Road Inc. manufactures and selis a variety of commercial vehicles in the Northeast and Southwest regions. There are two salespersons assigned to each territory.

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Havasu Off-Road Inc. manufactures and selis a variety of commercial vehicles in the Northeast and Southwest regions. There are two salespersons assigned to each territory. Higher commission rates go to the most experienced salespersons. The following sales statistics are available for each salesperson: a. 1. Prepare a contribution margin by salesperson report, Compute the contribution margin ratio for each salesperson. Havasu Off-Road Inc. Contribution Margin by Salesperson Paul earns the contribution margin and has the contribution margin ratio. This is because he sells the units, has a commission rate, and sells a product mix with a manufacturing margin, Steve also se products with a average manufacturing margin but at a commission rate, Colleen thas the contribution margin ratio among the four salespersons. Although Rene has a high variable cost of goods sold and also sells products with a average sales price per unit, she has the second total contribution margin. b. 1. Prepare a contribution margin by territory report. Compute the contribution margin for each territory as a percent, rounded to one decimal place. Havasu Off-Road Inc. Contribution Margin by Territory b. 2. Interpret the report. The Southwest Region has $ volume, has the salesperson with the because of the outstanding pertermance of more sales and 1 more contribution margin. In the Southwest Region, the salesperson with the highest sales unt contribution margin ratio. The Southwest Region has the performance, even though it also has the contribution margin ratio. The Northeast Region contribution margin is than the Sovthwest Region

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